Whether you are buying for the first time or have been venturing into condo investing for some time now, you cannot simply disregard the pitfalls that come with this endeavor. It’s not the same as buying a house or any other real estate property as you will have to seriously consider every decision you make. And there will be lots of choices and decisions to make, most of which will involve a considerable amount of money. So basically, the profits that you will make in this venture depend on your decision making skills.
To help you ensure earning good money on condo investing, here are some tips to avoid spending too much money.
- Spend time to evaluate a condo unit before deciding to actually put money on it. And when you are evaluating a unit, be sure to inspect every corner and take note of the acceptable and unacceptable problems. You can actually use these problems to lower the asking price. If possible, hire a professional inspector to ensure all areas of the unit will undergo inspection. Also, study and analyze the disclosure of known material defects that the condo building association or the previous owner will provide. Give some thought as to how you can use these defects to influence the unit’s final asking price.
- While buying condos at low price and investing money on renovations and a bit of sweat equity surely converts to good profit in time, not all condo units end up as good investments. This will entirely depend on how cheap you bought the condo and whether or not it is truly worth investing efforts and money on renovation. For a good measure, consult a condo investing realtor or expert to help you determine if the unit is truly worth your time, money, and effort.
- Do not let your guard down and let the condo owner or seller know how much you are willing to pay for the condo. Do not give them the slightest idea on how motivated you are to spend money for the unit. Instead of being able to get a good price on the condo and maybe even a discount, the seller or the owner will use your enthusiasm for the unit to increase the asking price.
- Some sellers or condo owners who want to proceed with the transaction much faster than necessary will claim that there is another serious buyer considering the unit and is close to paying the money. This may just be a spiel to make you pay more and upfront for the condo. Keep in mind that negotiation is the key to getting the best deal. So don’t get intimidated if your seller tells you another buyer will come look at the unit in a few days time. If this is the case, put in your best offer and be willing to negotiate with the owner or seller.
For more condo investing tips, contact Jerry Pinkas Real Estate Experts.
The Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
Your condo investing experts!